The FOMC is expected to meet tomorrow and the day after, which could have a significant impact on the crypto market. The market is on the brink of a bear market, and interest rate cuts could drive further growth.

However, Federal Reserve Chairman Jerome Powell is not concerned about these cuts, particularly with concerns such as inflation and tariffs. President Trump's personal intervention could be the best hope for interest rate cuts and a bullish story.

FOMC could decide the fate of crypto

The Federal Open Market Committee (FOMC) is scheduled to take place on 18-19/03/2025, and it could have a major impact on U.S. policy and the crypto market. Through this committee, the Federal Reserve will make important decisions about the U.S. economy, particularly whether to cut interest rates or not. Lower interest rates are very beneficial for crypto.

Earlier this year, Fed Chairman Jerome Powell signaled that he had no plans to cut interest rates. After this happened, it led to capital outflows from crypto, but the FOMC is concerned with all areas of the U.S. economy. Interest rate cuts are also related to inflation, and the threat from tariffs has led some in the community to believe that Powell will not concede.

However, the market is in a concerning position. The market has recently been in a state of Extreme Fear, which has somewhat subsided. Despite an increase in consumer confidence, the crypto industry does not have a clear narrative to attract mainstream consumers. It is not enough for a market to avoid disaster; it must continue to develop. So far, a good story has not emerged.

All of this is to say that the FOMC could be crypto's best hope to create a narrative. The crypto market has experienced a significant rally after Trump's election, but it has stalled, and those gains have been wiped out. Crypto is tied to traditional markets, and a bear market could help trigger a recession. Somehow, the industry must find a way to rebuild investor confidence.

Can Trump's intervention change the tide?

In other words, the FOMC could provide a crucial lifeline for the crypto industry. Recently, the U.S. CPI report revealed that inflation was lower than expected, boosting the crypto market. This data could help convince Powell that the U.S. economy can withstand another round of interest rate cuts. However, the industry is not betting on this report to make a difference.

Instead, President Trump could leverage his significant influence. He has advocated for interest rate cuts, for example. Trump has described himself as the "Crypto President," and his administration has served this industry; he could influence the FOMC.

To illustrate how this could play out, consider Trump's recent showcase of Tesla products at the White House. Tesla's stock price had declined, causing a belief that its valuation could collapse. However, after Trump's prominent endorsement on 10/03, Tesla's stock price rebounded. Tesla is also closely tied to the crypto market.

In other words, President Trump is acutely aware of the power that market narratives can have on asset prices and is willing to act to influence them. Trump's intervention could convince the FOMC to cut interest rates, thereby providing a lifeline for crypto. Regardless, the community is closely watching.